Onity Group (ONIT) completed the sale of a 15% stake in MSR Asset Vehicle to Oaktree Capital Management for $49.5 million.

Proceeds from a $500 million debt offering were released from escrow concurrent with the closing of the deal, Onity said Tuesday in a statement.

Net proceeds from the sale and offering along with cash at hand will be used to redeem all of the PHH Mortgage unit's $289 million of outstanding 7.875% senior notes due 2026 and all of Onity's $285 million of outstanding 12%/13.25% senior second lien notes due 2027.

PHH Mortgage will continue to service existing and new mortgage servicing rights for MSR Asset Vehicle for a five-year initial term, Onity said.